“The new development market is now stronger than it ever has been, and we are seeing developers preparing for another record-breaking year,” said Stephen G. Kliegerman, president of HPDM.
(PRWEB) January 22, 2015
Halstead Property Development Marketing (HPDM), the second largest residential development marketing firm representing real estate across Manhattan and Brooklyn, today released the industry’s first ever comprehensive report analyzing new development sales market data. For a copy of the full report, please visit: http://www.hpdmny.com/pdf/Year_End_Report_2014.pdf.
The overall findings from the HPDM New Development Market Report, which includes current numbers and the data from 2014, reflect continued robust pricing in the new development market, signaling strength moving into 2015 in both Manhattan and Brooklyn. According to the report, 52% of active new development listings in Manhattan are priced over $5M with average active PPSF at $2,757, bolstered by Billionaire’s Row1 and an overall strong luxury market. The median PPSF for active listings in Manhattan is 24.4% higher than contracts signed in 2014.
“The new development market is now stronger than it ever has been, and we are seeing developers preparing for another record-breaking year,” said Stephen G. Kliegerman, president of HPDM. “As a leader in new development marketing and sales, we understand the critical need for a new development-specific market report and while our research team has been tracking this data internally, we will now publish findings on a quarterly basis.”
With a total number of contracts signed and closed units of approximately 220 in 2014, the Brooklyn new development market is now approximately 10.5% as large as the Manhattan market by transaction volume. The report indicates that new development price points in Brooklyn are more approachable than Manhattan, with over 60% of active listings priced below $2M. Active new development listings in Brooklyn remain very strong, averaging $1,326 PPSF heading into 2015.
“Brooklyn is continuing to emerge as a major market for new developments,” said Robin Schneiderman, managing director of business development at HPDM. “We expect to see average prices increase in Brooklyn with approximately 40 new development units coming to market this year priced above $2M in Dumbo alone.”
The report also reveals trends among specific neighborhoods. Outside of Billionaire’s Row, the neighborhood with the largest quarter-over-quarter average PPSF increase in Manhattan was Harlem. Harlem had a 17.35% PPSF increase to $1,095 PSF in Q4 2014, predominately due to The Adeline at 23 West 116th Street. Additionally, Downtown Manhattan saw the most new development activity in 2014, with over 1,150 units closed or contract signed.
The report finds that unit mix trends vary by borough. In 2014, two bedrooms had the most signed and closed contracts of new development listings in Manhattan, representing over 740 new development units. In Brooklyn, one bedrooms were the most popular unit size with 90 new development units with signed or closed contracts.
All data in the report has been provided by Halstead Property Development Marketing. The HPDM New Development Market Report tracks new development projects only, defined as those new to the market and currently selling sponsor units. Buildings that have fully sold out of sponsor units are not included, even though they may have recently been built. Re-sale data is not included in the report.
About Halstead Property Development Marketing
Halstead Property Development Marketing (HPDM) is a leading sales and marketing firm dedicated to the craft of new development. HPDM partners with celebrated developers, architects, and designers to create superior building and living experiences of the highest caliber. Having represented billions of dollars in sales over the past decade, the team brings considerable skill, insight and dedication to carving out truly unique properties that benefit residents and developers. HPDM collaborates at every stage of the process, from site analysis to the final closing, crafting substance through the team’s ardent attention to the development process. All properties receive additional exposure through the unmatched domestic and international Halstead Property network. http://www.HPDMNY.com